Section 269ST shall not be applicable as the cash payment did not cross two lakhs or more, However, as per section 40A(3) payment or aggregate of payments made to a person in day which is exceeding 10000/- shall not be allowed as deduction.
Section 40A(3) reproduced here:
Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, 45[or use of electronic clearing system through a bank account, exceeds ten thousand rupees,] no deduction shall be allowed in respect of such expenditure.
Therefore in the present scenario, amount paid in cash (i.e. 1.90 lakhs) shall not be allowed as expenditure while computing the PGBP income as per Income Tax Act'1961.
Kindly do let us know if any further clarification/information is required.